The Magpies exceeded the annual $360,000 salary cap by $19,887. In a statement on the club's website, general manager Brian Leys said the club had overpaid its players by $4887 this season. But he said failure to lodge previously unpaid contract incentive payments to the SANFL by the March 30 deadline pushed the amount to $19,887.

"The club declared all of its payment details as required but unfortunately we had some accidental allocation errors and simple paperwork mistakes that weren't detected by reviews during the season and only came to light at the end of the year," the statement said. Under SANFL Salary Cap regulations clubs found guilty of salary cap breaches face fines and potential recruiting restrictions.

The Port Adelaide Football Club is cooperating with an investigation that has led to the Magpies being charged with exceeding the SANFL salary cap by $19,877 in 2012.

A routine end-of-season review of Magpies player payments revealed unintentional administrative errors that led it to breach the annual limit, which the club brought to the attention of the SANFL.

The club has worked with SANFL officials throughout the investigation and apologises for the accidental mistakes which have led to its first SANFL salary cap charges.

An examination of all contracts and actual payments revealed:

·The Magpies paid $364,887 to players in 2012 - $4,887 over the $360,000 salary cap. This is an over-run traditionally adjudged technical by the SANFL and punishable by a dollar-for-dollar fine.

·$10,000 in previously contracted incentive payments scrapped as part of a club policy ahead of the 2012 season and not paid. Unfortunately, the club failed to lodge Amendment of Contract forms ahead of the 30 March deadline to advise the SANFL the payments would not be made. Accordingly, that $10,000 is deemed to have been paid and must be included in the club’s 2012 total player payments.

·$5,000 in salary cap-exempt Zone Allowance payments inadvertently allocated to ineligible players not from the Magpies country zone. Accordingly, that $5000 must be included in the club’s 2012 total player payments.
Combined, the reckoned payments take the club’s total player payments in 2012 to $379,887, $19,877 over the salary cap and subject to greater sanction from the SA Football Commission.

Magpies general manager Brian Leys said the mistakes were embarrassing, but stressed the club had lodged all player payments and contracts openly and in good faith with the SANFL at the outset of the season.

“The club declared all of its payment details as required, but unfortunately we had some accidental allocation errors and simple paperwork mistakes that weren’t detected by reviews during the season and only came to light at the end of the year,” Leys said.

The errors were made ahead of the SANFL’s 30 March lodgement deadline, at a time when the Magpies were transitioning through a change of management and getting the season underway.

The club has always intended to abide by all rules and strongly upholds the importance of maintaining a clear understanding of the regulations to avoid mistakes.

It has learnt from its errors and is already implementing new player contract protocols and internal checks ahead of the 2013 SANFL season.

The SANFL advised Port Adelaide of the charges today and has given the club 14 days to formally respond before the sanction is imposed.

It is important to note that Magpies player payment arrangements are administered separately to those of its AFL players.

Port Adelaide was also charged last month with breaching the Salary Cap and has been penalised for exceeding the cap by $19,887.

The club has received a $50,000 fine in line with Salary Cap regulations.

SANFL General Manager – Football, Chris Davies, said the Commission had decided against issuing Port Adelaide with a recruiting ban due to the relative size of the breach and the nature of the administrative errors that had led to the breach.